Xinja savings product hits $30m

The neobank has reported that inflows into its new savings account product has exceeded $30 million in the first seven days of operation.

Xinja Bank has announced that its new Stash savings accounts have reached more than $30 million a week after launching.

The neobank recently announced it would launch Stash with a competitive savings rate and “no strings attached”.

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The Stash account was launched on 16 January and is a savings account that offers an ongoing interest rate of 2.25 per cent from the first dollar invested up to a maximum of $245,000.

Xinja Bank founder and CEO Eric Wilson said the feedback from customers demonstrated appetite for a new model for banking.

“We have built a 100 per cent digital bank from scratch, and within seven days of launching our first ever savings account, we’ve had a ripper response in excess of $30 million into our Stash savings accounts,” Mr Wilson said.

Mr Wilson added the savings account product offered the rate without the usual restrictive conditions. There is no introductory period, no mandatory monthly top-up amount, and no minimum deposit.

The interest is calculated daily and paid monthly. Additionally, the savings account has its own BSB and bank account numbers.

The neobank’s transaction account can be used with Apple Pay and Google Pay, and can be opened using the Xinja mobile app. Customers who have a Xinja Bank transaction account can then open the savings account.

According to Mr Wilson, Xinja customers have an average of $6,500 in their Stash accounts, while over half of the accounts have come from Australia’s four major banks.

The bank said it will offer personal loans and home loans in the near future.

Xinja is the latest neobank to launch new product offerings to the public, with Volt Bank and 86 400 rolling out savings and credit products in the second half of 2019.